Manitoba Telecom to sell fiber optic network to Accelero

TORONTO May 24 Manitoba Telecom Services Inc
said on Friday it has struck a deal to sell its
Allstream business, a fiber optic network stretching across
Canada, to Accelero Capital Holdings for C$520 million ($502.8
million), including debt assumed by the buyer.

Winnipeg-based Manitoba Telecom last year said it had begun
a wide-ranging strategic review of its Allstream business that
could result in the sale of the unit.

"This transaction makes MTS a stronger, more focused and
more valuable company," Chief Executive Pierre Blouin said in a
statement. "MTS goes forward as a pure-play telecom with a
strong consumer franchise and significant free cash flow to
support our dividend."

The deal will provide MTS with sufficient capital to invest
in wireless spectrum and to continue bringing fibre-to-the-home,
4G LTE wireless technology and other products to communities in
Manitoba, the company said.

After closing costs, MTS said it expects to realize net
proceeds of about C$405 million from the deal with Accelero, an
investment and management group focused on telecommunications,
digital media and technology.

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Inc has made a $14.1 billion bid for the remaining
shares of European pay-TV group Sky Plc that the U.S.
company does not already own, the British broadcaster said on
Friday.

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